Friday, October 23, 2009

Unemployment in Colorado good news for workers and good news for Ritter

Unemployment in Colorado is at 7% now, below the national average, and has been falling for the last few months. That's obviously good news for job seekers and it's also good news for Governor Ritter. The incumbents re-election chances are inversely correlated to the unemployment numbers, if unemployment goes down Ritter stands a better change at being re-elected. It really is that simple.

There is some bad news lurking around the corner though as tax receipts for the state continue to decline and the growing budget deficit must be closed. The governor has pledged not to seek new revenue sources to combat the deficit and there is little left in the state budget to cut to - aside from personnel. If layoffs are needed to close the budget they have the potential to throw the relatively rosy unemployment and economic numbers in the state off kilter. State employees pay taxes, consume goods and pay for services just like every other resident of the state. If jobs are lost further belt-tightening by a few thousand families may stymie our economic rebound.

The short term news is definitely good, in the long term the situation is still quite tenuous. Indeed if you scratch below the surface of just the basic unemployment numbers you'll find some not so encouraging news.

1 comment:

paul said...

Colorado Unemployment Trends - September 2009

Colorado Unemployment Trends Visualized as a Heat Map:
Colorado Unemployment in September 2009 (BLS data)

versus Colorado Unemployment Levels 1 year ago